Microsoft plans to appeal antitrust ruling

REDMOND, Wash. {AP} Microsoft Corp. plans to appeal a federal judge's ruling that its business practices violated antitrust law and hurt consumers.

"This ruling turns on its head the reality consumers know, that Microsoft makes PCs accessible and affordable to millions," Chairman Bill Gates said at a news conference.

"We believe in the course of that rigorous review by the Court of Appeals that Windows will be shown to be valuable to consumers," added Bill Neukom, executive vice president for law and corporate affairs.

In an earlier news release, the company said it "will continue to focus on creating the next generation of innovative software that benefits consumers, the high-technology industry and the American economy."

The ruling from U.S. District Judge Thomas Penfield Jackson "was not unexpected, given the District Court's previous rulings," the company said.

"Microsoft will request an expedited review by the U.S. Court of Appeals, following a remedies phase" penalties against the company "and final decree."

"As we look ahead to the appeals process, innovation will continue to be the No. 1 priority at Microsoft," Gates said. "While we did everything we could to settle this case, and will continue to look for new opportunities to resolve it without further litigation, we believe we have a strong case on appeal."

He said his company's past success "has been built on innovation and creativity, and our future success depends on our ability to keep innovating in the fastest-moving marketplace on Earth."

Neukom said, "It is a mistake for government regulators or the courts to try to design high-technology products. Government regulation of software product design would surely slow innovation and harm consumers."

He added that Jackson's ruling "is just one step in a legal process that could last several years.

The judge ruled that Microsoft violated the Sherman Antitrust Act by "unlawfully tying its Web browser to its operating system" and also could be sued under state anti-competition laws.

The verdict affirmed Jackson's previous ruling in November that the software giant is a monopoly, one that illegally used its power to bully competitors and stifle innovation, hurting consumers in the process.

Far from stifling innovation, Gates said, "The high-technology industry that Microsoft has helped create has unleashed a wave of competition and innovation that has led to new, more powerful products for consumers, at lower prices than ever before.

"This high-tech explosion also has dramatically increased business productivity and is truly the engine of the American economy, and increasingly, of the global economy," he added.